11
WEDNESDAY, JANUARY 12, 1994
SINCE THE
TENDS ΤΟ
TRADING
OF
PRICE OF WARRANTS AND SHARES IN QUESTION MOVE IN PARALLEL, THE INSIDER CAN OBTAIN PROFIT FROM THE THE WARRANTS JUST AS HE CAN BY DEALING IN THE UNDERLYING SHARES.
ONE EXAMPLE OF DERIVATIVES FALLING INTO THE ABOVE CATEGORY THIRD PARTY ISSUED WARRANTS.
THE NUMBER OF THESE WARRANTS TRADED ON THE STOCK EXCHANGE
PRODUCT BEEN ON THE INCREASE SINCE THE LISTING OF THE FIRST SUCH DECEMBER 1989.
BY NOVEMBER 1993, THERE WERE 54 SUCH INSTRUMENTS TRADED ON THIS YEAR BY EXCHANGE. STOCK OPTIONS INTENDED TO BE INTRODUCED STOCK EXCHANGE OF HONG KONG LTD ARE ANOTHER EXAMPLE.
IS
HAS
IN
THE
THE
THE
"SIMILAR PROBLEMS ARISE WHEN A DERIVATIVE IS NOT LISTED ON
FALL OUTSIDE STOCK EXCHANGE OF HONG KONG LTD. AGAIN, SUCH PRODUCTS
MR TAM SAID. THE SCOPE OF THE ORDINANCE,
MAY
AMERICAN DEPOSITARY RECEIPTS EXAMPLES OF THESE INCLUDE THE WHICH ARE NOT LISTED IN HONG KONG WHILE THE UNDERLYING SECURITIES BE LOCAL STOCKS.
ΤΟ
COVER
THE BILL SEEKS TO EXTEND THE SCOPE OF THE ORDINANCE THIRD PARTY ISSUED DERIVATIVE PRODUCTS IN RESPECT OF LISTED SECURITIES THE LOCAL IN HONG KONG WHETHER OR NOT THESE PRODUCTS ARE TRADED ON STOCK EXCHANGE.
LOOPHOLE IN THE
SCOPE
"THE BILL IS INTENDED TO PLUG AN EXISTING LEGISLATION. IT DOES NOT COVER SUGGESTIONS SUCH AS WHETHER THE OF INSIDER INFORMATION SHOULD BE EXTENDED OR SHOULD INSIDER DEALING BE MADE A CRIMINAL OFFENCE.
"THESE ARE COMPLICATED
MATTERS WHICH
NEED TO BE REVIEWED
"T
SEPARATELY, MR TAM SAID.
THE BILL WILL BE GAZETTED ON FRIDAY (JANUARY 14).
OLD AGE PENSION SCHEME LEAFLET NOW AVAILABLE
HELP
THE PUBLIC
THE GOVERNMENT HAS PUBLISHED A LEAFLET TO UNDERSTAND BETTER THE PROPOSED OLD AGE PENSION SCHEME.
CHINESE, THE PRINTED IN FULL COLOUR AND IN BOTH ENGLISH AND
ITS LEAFLET EXPLAINS IN SIMPLE LANGUAGE THE PRINCIPLE OF THE SCHEME,
THE
POLICY GOVERNMENT'S ADVANTAGES AND
FOR THE ELDERLY, BENEFITS
INTENTION AND COMMITMENT AS WELL AS THE NEXT STEPS IT WILL TAKE.
A
SIMPLE
BETWEEN
COMPARISON
AND A CENTRAL
THE LEAFLET ALSO CONTAINS CONTRIBUTIONS AND PAYOUTS UNDER THE PROPOSED SCHEME PROVIDENT FUND.
/A SPOKESMAN